Which of the Following Is an Incorrect Statement Regarding the Employer-Independent

question 81

Multiple Choice

Which of the following is an incorrect statement regarding the employer-independent contractor relationship?

• A) Independent contractors are hired by the principal-employer to do a specific job.
• B) Independent contractors are controlled with respect to their physical conduct in performing a specific job.
• C) Independent contractors are not controlled with respect to the details of their work performance.
• D) For independent contractors, employers are normally not required to make payments into workers' compensation pools.

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Definitions:

Accounting Basis

Refers to the method under which income and expenses are recognized and reported. The two primary methods are cash basis and accrual basis accounting.

NPV

Net Present Value, a calculation that discounts all cash flows associated with a project or investment back to the present value to assess its profitability.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations, reflecting its capacity to sustain and grow operations.

Financial Break-Even

The point at which total revenue exactly covers total costs, leaving no profit or loss.